Seventy people have been rescued after a passenger ferry ran aground on rocks in the Azores.

The 61 passengers and nine crew were evacuated from the stricken ship using a raft that was towed to shore by a semi-inflatable dinghy.

The alarm was sounded around 9.30am local time when the passenger ferry Mestre Simao, which carries up to 300 people in peak season, was pushed towards rocks at the entrance to the port of Madalena on the popular holiday island of Pico.

The 300 capacity ferry as pushed towards rocks at the entrance to the port of Madalena on the popular holiday island of Pico

Coastguards and marine police were immediately moblised and managed to get the passengers off in 30 minutes

The ship, operated by Atlantico Line, was covering the route between Horta on the island of Faial, one of the nine islands hat make up the Azores archipelago, and Madalena.

Coastguards and marine police were immediately mobilised and ambulances put on standby. The rescue operation lasted around 30 minutes.

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Horta port captain Rafael da Silva confirmed around midday today no-one had needed hospital treatment, although Madalena's mayor Jose Antonio Soares said some people had been taken to a local health centre after suffering panic attacks.

Mr da Silva said: 'I can confirm all 61 passengers and crew members are safe and sound and on dry land.

'It's natural some people felt frightened as it's an experience that can be traumatic as you can imagine but everyone is okay which is the main thing.'

The incident happened during a yellow weather warning for the area and is thought to have occurred after the vessel was pushed onto rocks by strong waves, although a prior technical fault has not been ruled out.

The incident happened during weather warning for the area and it is thought strong waves pushed the ship onto strong rocks

Local reports said water had started seeping inside the vessel when rescue teams reached it to take passengers off the ship, and the hull was badly damaged.

Pico and Faial make up a central group of four islands that form the nine major Azorean islands. The archipelago extends for more than 370 miles.

All the islands have volcanic origin. Mount Pico, on the island of Pico, is the highest point in Portugal.

The islands have long been popular with tourists looking to visit their natural assets, although the typical visitors are keen walkers who are not big on beach holidays.

The nationalities of those involved in the drama is unknown and it was not immediately clear if there were any holidaymakers on board the ferry.

Local Nina Ferreira said: 'The ferry came from Faial and was due to stop in Madalena on Pico and then continue to the neighbouring island of Sao Jorge before it ran aground.

'They're saying one of the engines failed and the waves pushed it onto the rocks.'